After Recent Leap, Indian Stocks
May Be Set for Temporary Tumble

By

Romit Guha and

John Satish Kumar

Updated June 4, 2007 12:01 a.m. ET

MUMBAI, India -- India's stock market may be headed for a drop after running up more than 18% in the past 11 weeks, as shares get pricey and investors worry that higher costs could squeeze corporate earnings this financial year.

But a correction -- if it comes -- might be only a temporary setback. Although many fund managers expect the Bombay Stock Exchange's benchmark Sensitive 30 index, or Sensex, to fall 10% to 15% from Friday's...